What is Ethereum

The Ethereum Ecosystem and the ETH Coin

Ethereum and Ether — despite the fact that the names are very similar to each other and it is very easy to confuse them, in fact they are completely different things. Ethereum is called the blockchain network itself, the protocol, and ether is a coin, the ETH token.

The Ethereum project was introduced to the world by a young developer Vitalik Buterin back in 2013 in an article on his blog a couple of years after the discovery of cryptocurrencies, namely the creation of bitcoin. He presented this network as a decentralized platform for digital technologies and financial solutions. The system itself began to work in 2015 as part of the ICO project, where there was a sale of tokens. Over 50 million Ethereum tokens have been sold on this forum.

At the moment, about 950 projects are working on the Ethereum blockchain, and the Ethereum rate has changed significantly in price since its launch and has grown by several thousand dollars.

The Ethereum system was not designed to run on only one device per user, it runs simultaneously on thousands of computers around the world, thus creating a decentralized network that is similar to bitcoin. It allows users from all over the world to exchange digital assets among themselves.

The key advantage of Ethereum is that on its basis, anyone can create their own decentralized application (DApp), which is not subject to censorship. In addition, programs created in this way can work in tandem with smart contracts and set order options for transactions. Smart contracts, in turn, allow you to maintain the transparency of the transaction and compliance with all conditions without additional adjustments. One of these contracts can be considered an elementary food machine: you give it the required number of coins, and in return it gives you the product you have chosen. The cryptocurrency that is used as a medium of exchange in this ecosystem is Ether. In order to use this coin, a person needs to create his own personal Ethereum wallet, where all his crypto coins will be stored. In order not to lose your ETH, you need to carefully choose reliable wallets. Today there are a huge number of them: cold, hardware, etc. It is equally important to keep the seed phrase safe in case access to the wallet is lost. Transactions made on the network cannot be changed or deleted, so when making an exchange of cryptocurrencies, for example, Ethereum to UAH, USD, EUR, carefully check the address of your cryptocurrency wallet and the address of the recipient. To begin with, it is recommended to send a small amount of money to the wallet to make sure that the address entered is correct.

Differences between Bitcoin and Ethereum

• Ethereum is not a bitcoin fork, and it does not work on the same blockchain as bitcoin. This is a completely new blockchain with different technical difficulties, but the same in theory as any other blockchain.
• The Ethereum blockchain belongs to the second generation of blockchains, more flexible for the development of various projects in the field of DeFi. While the bitcoin blockchain is limited in its capabilities due to the priority of security.
• One of the significant differences between ether and bitcoin is that on the bitcoin blockchain, the functionality of smart contracts is significantly limited in comparison with ether.
• Ethereum also has a faster time to add a block to the chain: only 12-19 seconds. Therefore, buying crypto in ether is easier and faster.
• If the issue of bitcoin is limited to 21 million coins, then the ether has no such restrictions.
• It is worth mentioning the economic model of the system, namely rewards. For example, the size of the reward in the Bitcoin internal network decreases by 12% every year, that is, after 4 years, the value of the reward drops by as much as 50%. On the Ethereum network, rewards do not decrease over time.
• The launch of Bitcoin took place in one day, while the launch of Ethereum took time to raise funds on crowdfunding platforms and from investors.

Advantages of Ethereum

• Since this currency is considered to be the number 2 currency on the world cryptocurrency arena, it has had great interest from investors, traders and ordinary users throughout its existence.
• The improved functionality of the technology, which allows you to create universal solutions for the requests of its users, ensures its relevance further.
• A large community of like-minded people who work for the recognition, reliability and support of crypto on all fronts: internal technology and the media world.

Disadvantages of Ethereum

• Like any other crypto coin, Ethereum has a large share of volatility, so the Ethereum price cannot be considered absolutely stable.

Brief overview of Ethereum Classic

ETC is an improved version of its predecessor Ethereum before the hard fork, which has the same interface and almost identical technology.This token can be transferred between network participants and used as a means of payment. This is the same decentralized programmable block as Ethereum, but there are some differences.It can perform tasks not only inside the system, but also on the public clouds of the network, thus processing more information. Also, this coin is considered unsurpassed in optimizing dApps solutions and smart contracts (in the Solidity language). As for the ETH Classic blockchain, users can create their own tokenized assets here.

Where and how to buy Ethereum?

If you want to make money on a purchase or buy a coin in your investment wallet for storage, then you need to analyze crypto exchanges and exchangers to understand where this can be done most profitably. The most trusted exchanges in the digital market for many years now are these platforms:

• Coinmama;
• IndaCoin;
• Changelly;
• Cardbit;
• Huobi;
• Kraken;
• Okex;
• Whitebit

These digital currency exchanges provide an accurate Ethereum chart and an Ethereum calculator, thanks to which you can always compare the Ethereum rate between different platforms. We advise you to be prepared for the fact that you will have to pay a commission to this financial platform and the bank for exchange transactions involving cryptocurrencies.

An equally popular way to buy ethereum are cryptocurrency exchangers. They are in great demand among customers due to the fast execution of transactions and crediting money to a personal account. Buycoin.online has been a cryptocurrency exchange for many years, serving thousands of customers. You can make an exchange by going to this page. By choosing the Buycoin.online exchanger, you will be able to perform exchange transactions in the shortest possible time, as profitably and, most importantly, safely.

Ethereum forecast and project development prospects

This coin is often called the second after bitcoin and the world's first altcoin. The price of ether is constantly changing due to two reasons. The first is the volatility of digital assets and the second is that someone is buying cryptocurrency and someone is selling it. Since the coin is very popular, many users take part in the auction every minute, which creates supply and demand. Through the use of open source and simplified digital blockchain technologies, the Ethereum cryptocurrency has attracted the interest of many investors, young startups, as well as international software developers, Microsoft and IBM. Since the coin is used not only to support speculation and investment, but also is a financial instrument for solving many problems.

It is up to you to decide whether to invest in Ethereum, but it is worth remembering that there are no absolutely reliable assets either on the digital market or among traditional instruments.